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Yeah it's SEO. Back links on sites help increase your google ranking. There is a PR (page ranking) number system for reputable to non reputable sites and each of these have an affect on your overall ranking on Google. If it's a really shit site that solely exists for backlinks it will actually hurt your ranking. My company actually got blacklisted from Google for a bit because they paid a Russian to throw up over 2000 backlinks on spam sites a few years back. Whoops.